The Statement That an Assignee "Takes Subject to the Equities

question 46

Multiple Choice

The statement that an assignee "takes subject to the equities" between the parties means:

• A) the assignee gets no greater rights against the debtor/promisor than the assignor had
• B) the court must decide whether it is fairer for the assignor or the assignee to be paid under the assignment
• C) before an assignee can enforce an assignment against the debtor/promisor it must demonstrate fairness
• D) for the assignment to be enforced it must be an equitable assignment
• E) the debtor/promisor can enforce any rights it has against the assignor against the assignee

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Definitions:

Uninformed Decisions

Choices made without access to all necessary information, knowledge, or understanding, which can lead to adverse outcomes.

Conflicts Of Interest

Situations where an individual's or organization's personal interests could potentially influence or appear to influence their decisions in their official capacity.

Supermajority Vote

A requirement that a motion must receive significantly more than a simple majority of votes, often two-thirds or three-quarters, to be approved.

Employee-Shareholder

An employee-shareholder is an employee who also holds shares in the company they work for, often benefiting from stock options or equity compensation plans.